Atalaya Announces Significant Increase in Mineral Resources at Proyecto Masa Valverde

5 April, 2022

Mineral Resource Estimate to support planned economic study on its potential development as a satellite deposit that could deliver higher grade material to Proyecto Riotinto

 Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is pleased to announce a new Mineral Resource Estimate (prepared in accordance with CIM guidelines and disclosure requirements of NI 43-101, for its 100% owned Proyecto Masa Valverde (“PMV”).  PMV is located in the Iberian Pyrite Belt of southern Spain approximately 28 km to the south of Atalaya’s 15 Mtpa processing plant at Proyecto Riotinto. PMV consists of two deposits, Masa Valverde and Majadales, which are 1 km apart. Majadales was initially discovered by Atalaya’s exploration team in 2019.

Highlights

  • Significant increase in tonnage and contained copper, silver and gold vs. prior estimate

—Increases of 42%, 33%, 26% and 34%, respectively at Masa Valverde deposit.

  • Masa Valverde Initial Indicated Mineral Resource:

—16.9 Mt at 0.66% Cu, 1.55% Zn, 0.65% Pb, 27 g/t Ag and 0.55 g/t Au (1.51% CuEq)

—Containing an estimated 112 kt Cu, 262 kt Zn, 110 kt Pb, 14.7 Moz Ag, 0.3 Moz Au

  • Masa Valverde Inferred Mineral Resource:

—73.4 Mt at 0.61% Cu, 1.24% Zn, 0.61% Pb, 30 g/t Ag and 0.62 g/t Au (1.37% CuEq)

—Containing an estimated 448 kt Cu, 911 kt Zn, 448 kt Pb, 70.8 Moz Ag, 1.5 Moz Au

  • Two copper-rich zones (10.2 Mt Indicated and 48.1 Mt Inferred) could deliver higher grade material for processing at the existing Proyecto Riotinto plant with minimal modifications
  • Majadales Initial Inferred Mineral Resource:

—3.1 Mt at 0.94% Cu, 3.08% Zn, 1.43% Pb, 54 g/t Ag and 0.32 g/t Au (2.55% CuEq)

  • A Preliminary Economic Assessment (“PEA”) on PMV is expected to be completed in H2 2022, with a focus on scenarios that would leverage the existing plant at Proyecto Riotinto and access the orebodies via a single ramp.
  • Permitting process continues, with submission of an exploitation concession application.
  • Continued potential for further resource expansion, with compelling targets already identified via recent detailed ground geophysical survey.

 

Alberto Lavandeira, CEO, commented:

“The current resource definition drilling programme that began in May 2021 has successfully expanded the Mineral Resource base and has also upgraded a portion to the Indicated category.

“We remain excited about the continued exploration potential at PMV, given the many anomalies our exploration team has identified. We hope to make further discoveries, building on our success in discovering the Majadales deposit, which is shallower and higher grade than Masa Valverde and thus may play a key role in optimising future development scenarios.

“At the Masa Valverde deposit, the significant increase in tonnage above cut-off, the sub-horizontal geometry and the defined continuity of the main mineralised zones will allow us to evaluate larger scale, more efficient and lower operating cost underground mining methods. These scenarios will be evaluated in the upcoming PEA, which is expected to focus on development scenarios that leverage our nearby Proyecto Riotinto processing plant, where copper-rich material from PMV could potentially be treated with minimal plant modifications, highlighting the opportunity to develop another project with low capital intensity.”

About Proyecto Masa Valverde

PMV is a volcanogenic massive sulphide (“VMS”) type deposit strategically located approximately 28 km from Proyecto Riotinto (see Figure 1). As announced on 21 October 2020, Atalaya acquired a 100% interest on PMV, after having conducted a period of due diligence and exploration on the property under an earlier option agreement.

PMV consists of two polymetallic deposits, Masa Valverde and Majadales, as well as several drill-ready targets (see Figure 2). The Majadales deposit was a new discovery made by Atalaya’s exploration team in July 2019.

2022 Mineral Resource Estimation Details

The 2022 Mineral Resource estimate has been prepared by CSA Global (UK) Limited (“CSA Global”). The geological model used is based on 122 drill holes with a total length of 76,123 metres, of which 83 drill holes and 58,993 metres relate to Masa Valverde and 39 drill holes and 17,130 metres to Majadales.

Assay results were compiled and validated as of 4 March 2022. CSA Global selected a cut-off grade of 0.78% CuEq for its resource estimation.

 

…the announcement continues. Read the entire announcement here.

 

 

Contacts:

SEC Newgate UK Elisabeth Cowell / Axaule Shukanayeva / Max Richardson + 44 20 3757 6882
4C Communications Carina Corbett +44 20 3170 7973
Canaccord Genuity (NOMAD and Joint Broker) Henry Fitzgerald-O’Connor / James Asensio +44 20 7523 8000
BMO Capital Markets (Joint Broker) Tom Rider / Andrew Cameron +44 20 7236 1010
Peel Hunt LLP (Joint Broker) Ross Allister / David McKeown +44 20 7418 8900

 

About Atalaya Mining Plc

Atalaya is an AIM and TSX-listed mining and development group which produces copper concentrates and silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain. Atalaya’s current operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a centralised processing hub for ore sourced from its wholly owned regional projects around Riotinto that include Proyecto Masa Valverde and Proyecto Riotinto East. In addition, the Group has a phased, earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield copper project in the northwest of Spain. For further information, visit www.atalayamining.com